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VOL. 8, ISSUE 4 (2022)
Impact of FDI and FII on the Indian Economy
Authors
Chavada Baldevbhai Vinodbhai, Dr. Prin. Jyotsnaben Patel
Abstract
Any emerging economy may find foreign inflows as a
blessing in disguise to spur the economic growth in its country by boosting
production, income and employment as well as increasing the technological and
the administrative efficiency. Since the landmark reforms in 1992, India has
witnessed a prodigious amount of foreign inflows especially is the beginning of
the 21st century, when it witnessed double-digit growth for most
periods of time. However, the foreign inflows bring along with them, their
curses, too. Theorists and economists have ever been arguing about the pros and
cons and their implications of the Indian economy. The main argument against
the foreign inflows is generally the introduction of instability in the
Financial system. This paper focuses on the two major mediums of foreign
investment in India: Foreign Direct Investment (FDI) and Foreign Institutional Investors (FII).
The paper starts off defining FDI and FII. It also delves into the regulations and the legal statutes
encompassing the rules and guidelines for each of them. It, thereafter,
explains the major economic implications FDI and FII have on the Indian economy.
Finally, it checks for any significant statistical relationships to corroborate
the hypothesis that there does exist a statistically significant relationship
between FDI/FII inflows and the market indices, which are assumed to be the
representatives of the economic condition of the country.
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Pages:83-86
How to cite this article:
Chavada Baldevbhai Vinodbhai, Dr. Prin. Jyotsnaben Patel "Impact of FDI and FII on the Indian Economy". International Journal of Commerce and Management Research, Vol 8, Issue 4, 2022, Pages 83-86
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